The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), held a virtual public hearing for the exposure draft of its revised Financial Accounting Standard “Financial reporting for Zakah” in collaboration with Bahrain Association of Banks (BAB), Central Bank of Syria (CBS) and Egyptian Islamic Finance Association (EIFA). The online session, delivered in Arabic, was attended by around 200 industry experts and practitioners from across the professional banking sectors, audit firms, and academicians from the region and other parts of the world and culminated the public hearings phase for the standard where a series of hearings had earlier been conducted online this year and pervious year.

The objective of this standard is to establish the principles of financial reporting related to Zakah attributable to different stakeholders of an Islamic financial institution including recognition presentation and disclosure in its financial statements. This standard improves upon and supersedes the existing FAS 9 on “Zakah”.

AAOIFI expressly acknowledges and appreciates the support of the industry. All industry feedback received—in the form of questions, comments, suggestions, and recommendations—will be collated and taken back to the respective working group and thereafter will be raised to AAOIFIs Accounting Board (AAB) for further deliberation before issuance of the final standard which is expected later in the year 2021.